Performance Information Use in the Canadian Higher Education Sector

Abstract

The problem with many performance management (PM) systems is that organizational members do not always use performance information, the result of performance measurement, in a rational manner to improve the decision-making process. In other words, scholars have found that the adoption, design and implementation of PM systems, all of which can consume significant resources, will not automatically result in the use of performance data to inform organizational decision-making. A number of PM academics assert that research in the area of performance information (PI) use is key in order to understand why PM systems sometimes fail. As a result, there is a growing body of empirical studies that focus on identifying variables that foster or constrain PI use. This mixed methods study, set in the Canadian higher education sector, continues in the same vein. Faced with difficult financial constraints and growing demands for accountability universities around the globe are increasingly introducing PM systems and using the data derived from these systems to make a variety of institutional decisions. Specifically, this study investigates the use of performance information (PI) to inform the decision-making process, stakeholder characteristics that may influence PI use and the strategies used to create a data driven culture. The findings show that Canadian university leaders have an above-average level of PI use. As well, the qualitative data indicate that a desire to demonstrate accountability and respond to accountability demands are the main factors driving PI use. However, the regression results are surprising. That is, even though faculty stakeholders are perceived to be very salient, there is no significant relationship between perceived faculty salience and PI use by university leaders. The only significant stakeholder relationship is between perceived staff salience and PI use. The findings also reveal a significant relationship between organizational size and PI use. As well, the predominant stakeholder management strategies regarding PM and PI use are involvement, collaboration, and monitoring, and peer influence is used to encourage non-supportive members to become supportive of PM and PI use.